Wayfair opening first-ever retail store next month with on-site restaurant just like at Ikea

WAYFAIR has announced the opening date for its first-ever physical retail store in the United States.

The Wilmette, Illinois location will feature an on-site restaurant and 150,000 square feet of shopping space.

Online furniture store Wayfair is turning to on-site retail for the first time in its 22-year history.

Opening May 23rd, a 15,000-square-foot store at Edens Plaza, Wilmette will give shoppers the chance to browse a wide range of furniture across departments.

What's more, the location will boast an on-site cafe and restaurant, The Porch, which may remind shoppers of the beloved eateries at Ikea.

"You'll be able to shop, explore, and be inspired like never before with huge immersive and interactive experiences across 19 departments," reads the Wayfair website.

While Wayfair has never opened a store under its own banner before, it has opened test stores for its brands Joss & Main and AllModern.

The move to physical retail comes as the e-commerce giant is suffering from a slump in sales.

Unfortunately, it is not profitable because of the amount of marketing that has to be done to attract and retain customers.

The company is increasingly needing to spend on advertising to remain relevant online.

Neil Saunders, retail industry analyst and managing director at GlobalData Retail told CNN: “Wayfair’s online business has been tremendously successful at generating sales. Unfortunately, it is not profitable because of the amount of marketing that has to be done to attract and retain customers.”

Wayfair reported a a 1.8% drop in its annual sales in 2023, to $12 billion, and a net loss for the year.

Meanwhile, major rival Ikea is expanding its physical retail footprint.

IKEA EXPANDS

Last year, Ikea announced the opening of 17 new stores as part of a $2.2 billion investment.

Nine of these stores are of a new format, named Plan & Order points, which are scaled-down versions of the flagship Ikea locations.

Inside, customers will be able to make shopping choices with the help of an advisor and arrange orders for home delivery.

CEO Javi Quiñones told CNBC at the time: “The whole intention here is to be closer to many more Americans.

“We started here in the U.S. almost 40 years ago, and this is the biggest [investment] we’ve ever done.”

COSTCO FURNITURE SHOWROOM

Meanwhile, Costco is also planning to open its first furniture and appliances showroom in 15 years.

Situated in Anchorage, Alaska, it will give shoppers the chance to see large items in real life before placing an order for shipment.

"You can touch and feel it and kick the tires, so it's a perfect opportunity to see what you can purchase," Christine Lasley, Costco director of real estate development, told Anchorage Daily News.

Meanwhile, see which grocery chains are planning to sell a combined total of 579 stores.

And which fashion retailer is closing down 95 locations due to bankruptcy.